PHOENIX–(BUSINESS WIRE)–May 11, 2020–
Viad Corp (NYSE: VVI ) will hold a conference call to review preliminary financial results for our 2020 first quarter on Thursday, May 14, 2020 at 5:00 p.m. Eastern Time. The call will be hosted by President and Chief Executive Officer Steve Moster and Chief Financial Officer Ellen Ingersoll, who will be joined by President of Pursuit David Barry. During the call, we will also provide an update on COVID impacts and our liquidity. We will issue a press release outlining our preliminary financial results and updates on that date and will also post it on our website at www.viad.com prior to the call.
Conference Call Details
To join our live teleconference on Thursday, May 14, 2020 at 5:00 p.m. Eastern Time, please call (833) 513-0557 and enter the passcode 2041759 or access the webcast through our website. A replay will be available for a limited time at (800) 585-8367 or (416) 621-4642, passcode 2041759, or visit our website and link to a replay of the webcast.
Waiver of Financial Covenants
On May 8, 2020, we amended the credit agreement for our $450 million revolving credit facility to suspend the testing of the interest coverage ratio and the leverage ratio for the fiscal quarter ending June 30, 2020. The amendment also adds a new minimum liquidity covenant, in addition to other reporting requirements, and extends the deadline for delivery of our quarterly financial statements for the 2020 first quarter.In addition, the amendment sets the applicable interest rate during the covenant waiver period to, at our option: (a) a customary base rate formula, plus a margin of 2.50% per annum (subject to a base rate floor of 2.00%) or (b) a customary eurocurrency rate formula, plus a margin of 3.50% per annum (subject to a eurocurrency rate floor of 1.00%).
Delay of First Quarter 2020 Form 10-Q Filing
The impact of COVID-19 on our business has resulted in the need to perform additional asset impairment testing and other complex financial analysis, which will delay the filing of our first quarter Form 10-Q. We expect to file our Form 10-Q no later than June 25, 2020, which is 45 days after the original due date of May 11, 2020. The preliminary financial results we expect to provide on Thursday, May 14, 2020 will therefore not include impairment charges and the corresponding tax effects, which are currently being evaluated. We do not expect the non-cash impairment charges to impact future operations or affect our liquidity or compliance with debt covenants. However, we expect the impact on Viad’s reported GAAP financial results to be material.
This press release contains a number of forward-looking statements. Words, and variations of words, such as “will,” “may,” “expect,” “would,” “could,” “might,” “intend,” “plan,” “believe,” “estimate,” “anticipate,” “deliver,” “seek,” “aim,” “potential,” “target,” “outlook,” and similar expressions are intended to identify our forward-looking statements. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. These forward-looking statements are not historical facts and are subject to a host of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those in the forward-looking statements.
Important factors that could cause actual results to differ materially from those described in our forward-looking statements include, but are not limited to, the following:
- the effects of the COVID-19 pandemic on our business;
- the impact of the pandemic and actions taken in response to the pandemic on global and regional economies, travel and economic activity;
- the pace of recovery when the COVID-19 pandemic subsides;
- general economic uncertainty in key global markets and a worsening of global economic conditions;
- our ability to successfully integrate and achieve established financial and strategic goals from acquisitions;
- our dependence on large exhibition event clients;
- the importance of key members of our account teams to our business relationships;
- the competitive nature of the industries in which we operate;
- travel industry disruptions;
- unanticipated delays and cost overruns of our capital projects, and our ability to achieve established financial and strategic goals for such projects;
- seasonality of our businesses;
- transportation disruptions and increases in transportation costs;
- natural disasters, weather conditions, and other catastrophic events;
- our multi-employer pension plan funding obligations;
- our exposure to labor cost increases and work stoppages related to unionized employees;
- liabilities relating to prior and discontinued operations;
- adverse effects of show rotation on our periodic results and operating margins;
- our exposure to currency exchange rate fluctuations;
- our exposure to cybersecurity attacks and threats;
- compliance with laws governing the storage, collection, handling, and transfer of personal data and our exposure to legal claims and fines for data breaches or improper handling of such data;
- the effects of the United Kingdom’s exit from the European Union; and
- changes affecting the London Inter-bank Offered Rate.
For a more complete discussion of the risks and uncertainties that may affect our business or financial results, please see Item 1A, “Risk Factors,” of our most recent annual report on Form 10-K filed with the SEC. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this press release except as required by applicable law or regulation.
Viad (NYSE: VVI ) generates revenue and shareholder value through two businesses: Pursuit and GES. Pursuit is a collection of inspiring and unforgettable travel experiences in Alaska, Montana, the Canadian Rockies, Vancouver, and Reykjavik, with new experiences in development in Las Vegas, Reykjavik, and Toronto. Pursuit’s collection of experiences includes attractions, lodges and hotels, and sightseeing tours that connect guests with iconic places. GES is a global, full-service live events company offering a comprehensive range of services to the world’s leading brands and event organizers. Our business strategy focuses on providing superior experiential services to our customers and sustainable returns on invested capital to our shareholders. Viad is an S&P SmallCap 600 company. For more information, visit www.viad.com.
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